Amid a challenging economic landscape, holiday shopping during Thanksgiving and Black Friday was robust.
According to Adobe’s Holiday Shopping Report, the Thanksgiving day spending reached $5.6 billion, while Black Friday spending hit $9.8 billion. The top categories consumers shopped this year included apparel, toys, and electronics.
This year, consumers were also leaning towards buy now, pay later (BNPL) platforms for many of their purchases. And with online shopping a mainstay for consumer preference, paired with deep discounts and the accessibility of BNPL, total revenue between November 1 and November 26 reached $96.9 billion dollars, per Adobe.
Consumers Set to Spend More This Holiday
Although many consumers are struggling under the weight of growing debt and an increase in prices, this is not putting a damper on their holiday spending.
In fact, various studies from Adobe, Shopify, and PwC, indicate that consumers are ready to spend, provided that they see two things: deep discounts and flexible payment plans.
BNPL is certainly becoming more appealling for many consumers as a way to ultimately pay for purchases—particularly large ticket items—through smaller installments. And consumers are more money-conscious this year, eyeing deals that better fit their current budget. Retailers are taking note, rolling out discounts as a way to incentivize consumers and drive up revenue. As electronics are typically one of the key categories consumers shop, many retailers marked down electronic products during Black Friday. According to Adobe data, electronic discounts alone will reach 30% this year, up from 25% in 2022.
Don’t Sleep on Social
Although holiday spending is not over yet, it will be interesting to see how TikTok and other social media platforms drive spending this year. ESW reported that 36% of consumers surveyed said they will leverage TikTok for their holiday inspirations. More than half (53%) of younger consumers ages 18 to 29 said they plan to use the social network for their gift-giving needs. Interestingly, older consumers also have plans to use TikTok Shop for gifts, with 16% of participants ages 40 to 60 saying they plan to purchase their holiday gifts this way.
